How Starbucks is Leveraging AI and Technology to Win Customers Back

Mon Feb 02 2026 15:54:13 GMT+0200 (Eastern European Standard Time)

In a bid to revitalize its brand and recover from sluggish sales, Starbucks is investing heavily in AI and technology, aiming to enhance customer experience while managing costs.

Starbucks is implementing a range of technologies, including AI-driven tools for order processing and inventory management, to improve customer service and operational efficiency. This is part of a broader strategy to reverse declining sales amid increasing competition and pricing challenges. The company's recent performance shows signs of recovery, but it faces ongoing scrutiny over profits and labor relations.

Americans pulling into a Starbucks drive-thru might think they are being served by a friendly staff member. But at some locations, the voice listening to the order is actually an AI robot.

Behind the counter inside the store, baristas can lean on a virtual personal assistant to recall recipes or manage schedules. In the back of the shop, a scanning tool has taken on the painstaking process of counting the inventory, relieving staff of one of retail's most tedious chores, in a bid to fix the out-of-stock gaps that have frustrated the firm.

The new technology is part of the hundreds of millions of dollars the 55-year-old coffee giant has been investing as it tries to win back customers after several years of struggling sales. And there are signs that the effort is working. Last week, the company reported its first sales increase in two years at established stores in the US, its biggest and most important market, accounting for some 70% of revenue.

However, the firm's share price slid 5% reflecting investor concerns that all the spending, which includes $500m (£363m) to boost staffing, had hurt profits. Chief executive Brian Niccol says he is confident that consistent sales growth will ultimately address that problem. But with the company promising to find $2bn in cost savings over the next three years, investments in technology are crucial to ensuring that improved sales also yield better profits.

Niccol joined the company in 2024, at a time when the business was under pressure. Customers were balking after a string of price increases. Competition was heating up and the brand faced boycott calls tied to unionised barista disputes over pay and benefits.

To improve the vibes, staff were urged to return to writing customer names on cups by hand. The firm also started sprucing up shops with inviting armchairs, new paint and ceramic mugs - all part of a $150,000-per-store uplift that is expected to take four years to complete.

At drive-throughs, Starbucks is testing a system to process orders and free up staff to focus on hospitality or making the coffees. The company's efforts to combine technology with a personal touch may be just what it needs to remain competitive in a rapidly changing market.